This invention relates to evaluating risk associated with a subject property. In particular, this invention pertains to evaluating risk associated with financing the purchase of, or investing in, real property. This invention also relates to evaluating the accuracy of an appraisal of a subject property and whether the subject property is a good or safe investment.
In today's competitive mortgage market, financial institutions often must quickly determine whether or not to approve a loan for the purchase of a subject property. However, such determinations expose the financial institution to a significant amount of risk. For instance, overpriced properties, or properties that are likely to decrease in value, increase the financial institution's risk that it will lose money on the transaction. Therefore, it is critical that these financial institutions quickly receive reliable information that will assist them in determining whether approving a loan for a subject property will expose them to an unacceptable amount of risk.